Thursday 31 May 2012 Pullman Hotel

Co-Hosts

Asia Markets – Best Distribution Channels Chair: Paul Yeo, General Manager Tourism Operations – Tourism New Zealand

Mark Frood

International Market Development Manager – Auckland International Airport

John Farrell

Area Director Sales and Marketing, NZ and South Pacific – Accor

Garrick Emms

Marketing Consultant – New Zealand Lodge Association

NZ HOTEL INDUSTRY CONFERENCE ASIA MARKETS – BEST DISTRIBUTION

TRENDS

A Portfolio Approach to Market Prioritisation

Australia

China

USA

UK

Germany

Japan

SEA

Canada

France

Scandinavia

India

Hong Kong

Taiwan

Korea

Eastern Europe

South America

Remainder of

Western Europe

Overall Visitor Numbers are rising Western long haul markets struggle, most of South East Asia continues to thrive, and Au

remains up

Top ten

markets Visitor numbers

Total

Trend

(YOY)

Australia 1,161 3.7%

UK 216 -3.0%

USA 184 -3.6%

China 168 29.8%

Japan 67 -19.0%

Germany 63 -2.8%

Korea 54 -14.4%

Canada 49 1.0%

Singapore 39 26.4%

Malaysia 38 61.1%

Total 2,616 3.9% Source: International Visitor Arrivals YE Apr 2012

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Arr

iva

ls

Arrivals - All Markets

Australia

NZ’s fastest growing markets remain in Asia Future projections indicate China and Singapore will lead with the highest growth

Expected FY13

normalised

growth

<0%

High +>10%

Length of Stay -

Holiday

5 days +>20 days

China

Singapore

France

Canada

Korea

Germany

USA

UK

Malaysia

Size of bubbles

represents

arrivals in NZ

But holiday stay days tell a slightly different story Top5: Au, UK, Ger, US, Fr (China #6)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

YE Apr 2000

YE Apr 2001

YE Apr 2002

YE Apr 2003

YE Apr 2004

YE Apr 2005

YE Apr 2006

YE Apr 2007

YE Apr 2008

YE Apr 2009

YE Apr 2010

YE Apr 2011

YE Apr 2012

Tota

l Sta

y D

ays

Total Stay Days - HolidayTop 10 Markets

Australia

United Kingdom

Germany

United States of America

France

China

Canada

Netherlands

Japan

Korea

Visitor arrivals (all) by region Oceania leads for Arrivals with reasonable growth. Asia presents a big opportunity

1,303,276

487,216 450,420

266,492

50,728

4%

8%

1%

-1%

12%

-5%

0%

5%

10%

15%

20%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Oceania Asia Europe Americas Africa and the

Middle East

Vis

ito

r A

rriv

als

Regional Visitor Arrivals and Growth All markets

Visitor Arrivals (all)

Year on Year Growth

Source: International Visitor Arrivals YE Apr 2012

Stay days (all) by region Oceania leads for stay days while Europe sits in second place ahead of Asia which has

been hit hard by Japan and Korea

Source: International Visitor Arrivals YE Apr 2012

16,099,016 15,595,300

10,229,112

5,800,468

1,483,936

-1.1%

4.1%

-1.1% -1.5% -4.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Oceania Europe Asia Americas Africa and the

Middle East

Sta

y d

ay

s

Regional Visitor Stay Days and Growth All markets

Stay Days (all)

Year on Year Growth

A CLOSER LOOK AT CHINA

Chinese Arrivals

Chinese arrivals have seen solid growth over the last decade.

Source: Statistics New Zealand – International Travel and Migration

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Arr

iva

ls

Year End March

Arrivals From China

Total

Holiday

Annual Growth

2007 38.8%

2008 21.0%

2009 -3.2%

2010 -16.8%

2011 38.3%

2012 25.4%

69%

14%

8%

1% 2%3% 3%

Purpose of Visit - Arrivals

Holiday

VFR

Business

Conference

Education

Unspecified

Other

Average Length of Stay Holiday 6.1 days

VFR 60.9 days

Business 8.1 days

Education 125.9 days

Other 25.9 days

24%

47%

4%0%

16%

3%

6%

Purpose of Visit - Total Stay Days

Holiday

VFR

Business

Conference

Education

Unspecified

Other

Purpose of Visit

While Chinese holiday tourists dominate arrivals, their extremely short length of stay means that holiday

arrivals are under represented in Chinese stay days. On the other hand the long length of stay of

Chinese VFR (visiting friends and relatives) tourists means VFR tourists make up 47 percent of Chinese

stay days in New Zealand.

Source: International Travel and Migration – YE March 2012

Chinese International Tourists FY12 YTD (Feb)

Group

65%

Non -Group

35%

Chinese Independent Holiday Tourists = 13% (14,905 tourists)

For definitions see appendix one

Source: Immigration New Zealand, Chinese Visa Approvals, FY12 YTD

International Travel and Migration, FY12 YTD

ADS57%

PRC Delegations7%

Other Group1%

Independent Holiday13%

VFR13%

Other (Non-Group)9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ADS PRC Delegations Other Group Independent Holiday VFR Other (Non-Group)*

About Chinese Independent

Holiday Tourists

Little information exists on independent Chinese holiday tourists

because they make up such a small part of our IVS statistics. However they:

• stay in New Zealand for longer than Chinese tour group holiday tourists (possibly around

16 days on average)

• visit more regions than tour group holiday tourists (5 on average)

• do more activities than tour group holiday tourists (13 on average)

They also do very similar activities to independent holiday tourists from other markets

including; visiting scenic and natural attractions, going to beaches, going to hot pools,

visiting glaciers and even do as many adventure activities as other markets.

Source: International Visitor Survey – March 2008 to March 2012

Key Tourism New

Zealand Active

Consider segments

in China

Adventurers

18-29

Pre family

FIT

Living at home

Wealthy family

Travel with friends

or alone

Escapers

30-49

Revival message

Have kids and jobs

Financial

commitments

Shorter LOS 5-7

High spend

50/50 FIT/Group

Lots of repeat

visitation

Journey

Seekers

50+

High VFR

Long LOS

Still working, more

settled

Self Drive

Good fit with NZ

Brand

Total Effort by

Target Group

20% 50% 30% 100

%

Thursday 31 May 2012 Pullman Hotel

Co-Hosts

Asia Markets – Best Distribution Channels Chair: Paul Yeo, General Manager Tourism Operations – Tourism New Zealand

Mark Frood

International Market Development Manager – Auckland International Airport

John Farrell

Area Director Sales and Marketing, NZ and South Pacific – Accor

Garrick Emms

Marketing Consultant – New Zealand Lodge Association

Thursday 31 May 2012 Pullman Hotel

Co-Hosts

Asia Markets – Best Distribution Channels Chair: Paul Yeo, General Manager Tourism Operations – Tourism New Zealand

Mark Frood

International Market Development Manager – Auckland International Airport

John Farrell

Area Director Sales and Marketing, NZ and South Pacific – Accor

Garrick Emms

Marketing Consultant – New Zealand Lodge Association

China’s luxury travel consumers – Key Trends

Preferred Sport %

1 Golf 13.4

2 Swimming 8.1

3 Yoga 2.4

4 Badminton 2.3

5 Mountaineering 2.1

Source: Hurun Research Institute 2011

Rise of the second generation-Education is key

Preferred Educational Destination

Rank Country %

1 USA 30.7

2 UK 21.4

3 Canada 14.3

4 Switzerland 7.5

5 New Zealand 7.3

Hurun Research Institute 2011

Hotel Booking

Preferred Hotel Reservation method %

Professional travel website 27

Travel service 27

Hotel membership service 18

Friend 16

Official website of the hotel 11

Decide on site 2

Source: Hurun White Paper on Chinese Luxury Market Special Survey 2011

Luxury Hotels

Rank Best Luxury Hotel Brand 1 Shangri-La

2 Hilton

3 Park Hyatt

4 The Ritz-Carlton

5 Peninsula

6 Grand Hyatt

7 Sheraton

8 Kempinski

9 Marriott

10 Hyatt Regency

11 InterContinental

12 Sofitel

Source: 2011 Hurun Best of the Best SurveyM

Branding Data Table

Positioning

Men’s Shoes Typical Brands

Coef.

Hotel Rooms, Paris

Typical Brands

Coef. Man’s Watch

Typical Brands

Coef.

Woman’s Blouse Typical Brands

Coef. Average

Coef.

Luxury Market

Berlutti - Four

Seasons - Cartier - Chanel - -

Upper Market

Church’s X2 Hilton X4 Hugo Boss X5 Kenzo X9 X5

Mid Market Clarks X9 Novotel X11 Seiko X19 Zara X23 X15.5

Lower Market

Bata X14.5 Ibis x22 Swatch X37.5 H&M x45 X29.75

Thursday 31 May 2012 Pullman Hotel

Co-Hosts

Asia Markets – Best Distribution Channels Chair: Paul Yeo, General Manager Tourism Operations – Tourism New Zealand

Mark Frood

International Market Development Manager – Auckland International Airport

John Farrell

Area Director Sales and Marketing, NZ and South Pacific – Accor

Garrick Emms

Marketing Consultant – New Zealand Lodge Association

Thursday 31 May 2012 Pullman Hotel

Co-Hosts

Asia Markets – Best Distribution Channels Chair: Paul Yeo, General Manager Tourism Operations – Tourism New Zealand

Mark Frood

International Market Development Manager – Auckland International Airport

John Farrell

Area Director Sales and Marketing, NZ and South Pacific – Accor

Garrick Emms

Marketing Consultant – New Zealand Lodge Association